INSURANCE BROKERS IN NIGERIA

MEANING OF INSURANCE BROKERS

Insurance Brokers in Nigeria are part of the chains in the insurance business. They act as middlemen between prospective policyholders. The primary roles of insurance brokers are negotiating, selling and soliciting on behalf of Clients (a prospective policyholder) in exchange for a compensation or commission. Also, insurance brokers do not act for insurance companies. It is only insurance agents that do. The insurance agents act as representatives for one or more insurance companies under an agreement.

Insurance brokers also specialize in risk management and find for their clients, the best insurance plan suitable for their insurance needs.

TYPES OF INNSURANCE BROKERS

There are basically two types of insurance brokers and they include the retail insurance brokers and the commercial insurance brokers.

Retail insurance brokers

The retail insurance broker I the category of insurance broker that works closest to the client. They strive or work with the sole aim of sourcing the best insurance policies for their clients. They may buy these policies from either the insurance companies directly or from the wholesale insurance brokers.

Commercial insurance brokers

Commercial insurance brokers are the types of insurance brokers that also act as a middleman between an insurance broker and his clients and the insurers. He takes extra steps to find for his clients the best commercial insurance policy options. They do not consider options from a single insurance provider. This means that their jobs concerns the comparison of premiums from several insurance providers and find the ones that are cost friendly to their clients. The quality of a good commercial broker includes good knowledge and experience of insurance broking business, strong ethics, effective and good communication skills, good interpersonal relationship, effective and efficient client customer service, availability.